Q3 GDP rose 1.1%q/q, above the market consensus of 0.9% and well above the RBNZ forecast of 0.4%q/q. In y/y terms growth was also stronger at 1.3%, but this was in line with the consensus estimate. Q2 growth was revised lower though to a contraction of -1.0%q/q, versus the original estimate of -0.9%. The y/y outcome was revised to -1.1% from -0.6% originally reported for Q2. The lower base we are coming from is likely tempering market reaction to the Q3 GDP beat (NZD/USD couldn't sustain post data print gains above 0.5780). The chart below plots GDP growth trends in q/q (the white line) and y/y (orange line) terms.
Fig 1: NZ GDP - Q/Q & Y/Y

Source: Bloomberg Finance L.P./MNI
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The overnight range was 154.63 - 155.30, Asia is currently trading around 155.25. The pair was quietly bid all day yesterday and then broke through 155.00 in the N/Y session. The move lower in risk did not bring the usual bout of Yen buying as its safe haven status is questioned. Usd/Jpy I suspect will remain well supported on dips as the market remains wary of the new leadership policies. I will be watching today to see if the pair can build on its move above 155.00 and regain its momentum higher, look for dips in the Asian session back toward 154.70-154.90 to be supported on dips initially.
Fig 1 : USD/JPY Spot Daily Chart

Source: MNI - Market News/Bloomberg Finance L.P
| 0300BST | 1100HKT | 1400AEDT | South Korea Q3 Household Credit |
| 0830BST | 1630HKT | 1930AEDT | Hong Kong Oct Unemployment Rate |
| China Oct FDI |
Source: Bloomberg Finance L.P./MNI
The key events this week are the December RBA minutes published Tuesday and Q3 WPI on Wednesday. Given the high degree of uncertainty around how restrictive policy currently is and how close the economy is to trend, any further details on the Board’s thinking are likely to be important.